HubSpot (NYSE:HUBS – Get Free Report) released its quarterly earnings data on Wednesday. The software maker reported $3.81 EPS for the quarter, topping the consensus estimate of $3.27 by $0.54, FiscalAI reports. HubSpot had a net margin of 4.26% and a return on equity of 8.66%. The company had revenue of $947.57 million during the quarter, compared to the consensus estimate of $925.50 million. During the same period last year, the firm earned $2.66 EPS. HubSpot’s revenue for the quarter was up 17.1% on a year-over-year basis.
Here are the key takeaways from HubSpot’s conference call:
- Q3 revenue grew 17% year over year, while non-GAAP operating margin expanded three points to 23%. Free cash flow was $188 million, or 20% of revenue.
- Customer budget sensitivity and longer buying cycles intensified, particularly among smaller customers and in larger, more complex deals. HubSpot expects Q4 net additions to be below Q3’s 5,300, full-year net new ARR to decline year over year, and 2026 net revenue retention to fall about two points year over year.
- HubSpot reported rising AI engagement: Pro+ customer use of agents reached 20%, monthly agentic actions increased fivefold since the start of the year, and credit consumption rose nearly 2.5 times. Management said trials are growing, but converting them to paid adoption requires more customer support and time.
- The company is piloting simpler seats-and-credits pricing, which has brought higher Pro+ customer volume and two to three times more credit usage in pilot regions, but lower average selling prices. HubSpot is expanding the pilot across EMEA for new customers before deciding on broader rollout.
HubSpot Price Performance
NYSE HUBS traded down $9.01 during trading on Wednesday, reaching $217.16. The company’s stock had a trading volume of 4,246,198 shares, compared to its average volume of 1,050,416. The firm has a fifty day moving average of $233.82 and a 200 day moving average of $230.93. HubSpot has a one year low of $169.63 and a one year high of $476.64. The stock has a market capitalization of $10.83 billion, a PE ratio of 71.12, a P/E/G ratio of 2.30 and a beta of 1.14.
Key Stories Impacting HubSpot
Here are the key news stories impacting HubSpot this week:
- Positive Sentiment: Q3 adjusted earnings were $3.81 per share, above analyst estimates of about $3.27, and up from $2.66 a year earlier. Revenue of $947.57 million also topped estimates of $925.50 million. HubSpot Surpasses Q3 Earnings and Revenue Estimates
- Positive Sentiment: HubSpot raised its 2026 outlook, providing some support alongside the quarterly beat. HubSpot Q3 Earnings, Revenue Rise; Q4 Guidance Issued, 2026 Outlook Lifted
- Negative Sentiment: Q4 revenue guidance missed market expectations, weighing on the results’ otherwise positive headline numbers. Coverage also characterized the quarter as showing a growth slowdown, making the forward outlook a likely focus for investors. HubSpot Dips After Q4 Guidance Comes Up Short
Wall Street Analysts Forecast Growth
A number of research firms have weighed in on HUBS. Truist Financial lifted their target price on HubSpot from $230.00 to $275.00 and gave the company a “buy” rating in a report on Monday, September 21st. Sanford C. Bernstein downgraded shares of HubSpot from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $381.00 to $220.00 in a report on Thursday, August 6th. William Blair restated a “market perform” rating on shares of HubSpot in a research report on Tuesday, October 6th. Cantor Fitzgerald boosted their price objective on shares of HubSpot from $200.00 to $265.00 and gave the company a “neutral” rating in a research note on Friday, October 30th. Finally, UBS Group set a $265.00 target price on shares of HubSpot and gave the stock a “neutral” rating in a report on Friday, October 30th. Eleven investment analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, HubSpot currently has an average rating of “Hold” and an average target price of $272.77.
Check Out Our Latest Stock Report on HubSpot
Insider Transactions at HubSpot
In other HubSpot news, Director Gerald Dischler acquired 925 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was bought at an average price of $215.93 per share, with a total value of $199,735.25. Following the completion of the acquisition, the director owned 1,940 shares of the company’s stock, valued at $418,904.20. This trade represents a 91.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Brian Halligan sold 8,500 shares of the company’s stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $239.57, for a total transaction of $2,036,345.00. Following the completion of the transaction, the director owned 59,500 shares in the company, valued at approximately $14,254,415. This trade represents a 12.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 25,500 shares of company stock valued at $5,990,035. Corporate insiders own 3.70% of the company’s stock.
About HubSpot
HubSpot, Inc is a cloud-based customer relationship management (CRM) platform provider serving businesses that want to attract, engage and retain customers. Its platform brings together tools for marketing, sales, customer service, content management, operations and commerce, helping organizations manage customer interactions across the customer lifecycle.
The company’s offerings include marketing automation, email marketing, lead generation, website and content management, sales pipeline and engagement tools, customer support and help-desk capabilities, reporting and analytics, and payment and commerce features.
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